Coin World reports that the feds are looking to seize liberty dollars from
collectors and those using the coins instead of inflation-ridden Federal
Reserve notes.

Officials with the U.S. Attorney’s Office said on August 24 that the
coins are contraband. The Secret Service, the federal agency responsible
for confiscating counterfeit money, did not provide any definitive
comments concerning under what circumstances Liberty Dollars would be
seized, according to Paul Gikes of Coin World.

The coins are illegal even if they are not used for barter, the feds
insist. Jill Rose, chief of the August 24 that the Liberty Dollar
medallions are confiscable as contraband if they are being exhibited for
educational purposes or held privately.

Rose was the lead prosecutor in the Bernard von NotHaus case. Von
NotHaus is the creator of the Liberty Dollar. He was convicted by the
feds in March on multiple charges involving the alternative currency
that competes with fiat money distributed by the privately owned Federal
Reserve. During the trial it was determined that Liberty Dollars are
counterfeits, contraband and subject to seizure.